What is the structure and value of Kuwait Petroleum Corporation's pipeline deal with Blackstone, KKR, and Brookfield?

Kuwait Petroleum Corporation (KPC) signed a $16 billion lease and leaseback deal—named Project Peregrine—with a consortium of Blackstone, KKR, and Brookfield for its crude oil pipeline network; under the agreement, KPC's unit Kuwait Oil Company (KOC) forms a joint venture with the three U.S. investors for a 20.5-year term featuring a volume-based tariff, with the investors collectively holding a 49% stake while KOC retains 51% ownership plus full ownership and operational control of the 13-pipeline, ~320-kilometre network, and the transaction is expected to generate $7.85 billion in upfront proceeds at closing.

Why is this deal significant for Kuwait's economy and energy sector?

The deal is described by KPC as 'the largest foreign direct investment in the country's history' and forms part of a broader regional strategy by Gulf state oil companies and sovereign investors to raise capital from infrastructure assets and attract foreign investment to fund domestic development plans.

Kuwait's KPC signs $16 billion lease and leaseback deal with Blackstone, KKR, Brookfield for oil pipeline network

Jul 24, 2026

Kuwait Petroleum Corporation signed a historic $16 billion lease deal with Blackstone, KKR, and Brookfield for its crude oil pipeline network. Foreign investors will hold a 49% stake under Project Peregrine while KOC retains operational control.

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Kuwait's KPC signs $16 billion lease and leaseback deal with Blackstone, KKR, Brookfield for oil pipeline network

Kuwait's KPC signs $16 billion lease and leaseback deal with Blackstone, KKR, Brookfield for oil pipeline network

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